Update: receivership of Five Star Consumer Finance

Friday, 7 September 2007

Update on receivership of Five Star Consumer Finance

The receivers of Five Star Consumer Finance (‘Five Star’), PricewaterhouseCoopers partners Richard Agnew and Anthony Boswell are now in a position to provide information on the number of investors and the value of debenture holders’ investments in relation to the company.

Richard Agnew said his team was working through the loan books of Five Star and its three subsidiary companies with a view to establishing the likely value. “Our work is progressing well and we hope to provide investors with an indication of their likely returns in two to three weeks,” he said.

According to information supplied by the company:

- 2,145 investors are affected by the receivership, and secured debenture stock totalled $51.1m. Funding was sourced throughout New Zealand (75% from the Auckland, Waikato/Bay of Plenty, and Canterbury/Marlborough regions) predominantly from private investors.

- As at 31 March 2007, 65% of money lent by Five Star was in the commercial sector, with the remaining 35% being lent in the retail sector. The geographical spread of where the company lent its funds was concentrated on the Auckland region.

ENDS

NOTES TO EDITORS

1. The receivers advise they have no further comments to make in relation to Five Star at this stage.

2. A dedicated page on the PricewaterhouseCoopers website is online at www.pwc.com/nz/fivestarfinance and is being updated. A dedicated phone line (09) 355 8855 has also been established for any investor or creditor who has an enquiry relating to Five Star.

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